BHP Billiton Lifts Iron-Ore Production Estimates

   By Rhiannon Hoyle 
 

SYDNEY--BHP Billiton Ltd. (BHP.AU) said it expects to produce more iron ore than previously anticipated from its Australian mining operations in its fiscal year, as the world's largest miner recorded a 20% on-year rise in quarterly output of the steelmaking ingredient.

On Wednesday, BHP said it produced 59.0 million metric tons of iron ore in the three months through March, up one-fifth on the same period a year earlier and 5% on the quarter immediately prior. In the first three quarters of its financial year, which ends June 30, output totaled 172.4 million tons, up 17% on-year.

BHP lifted group production guidance by 2% to 230 million tons for the full year.

BHP operates an expansive network of iron-ore mines, railway and port terminals in Australia's remote northwest, and also has iron-ore interests in Brazil.

It said its Western Australian operations had produced a record 188 million tons of ore fiscal-year-to-date, including the share of minority joint-venture partners. The miner also increased full-year guidance for those operations by 2%, to 250 million tons.

The Anglo-Australian company said it had been running its operations harder and had been little affected by wet weather in the region last quarter.

"The potential of our installed infrastructure continues to exceed expectations," BHP said. It said it would defer a project designed to improve capacity for its inner harbour infrastructure at Port Hedland, the world's largest iron-ore export hub.

BHP said the decision would slow its expansion to a targeted 290-million-ton capacity, but that the expansion would now come at a lower cost.

The miner, meanwhile, said it should produce more metallurgical coal than anticipated this year, but less copper.

Write to Rhiannon Hoyle at [e-mail]

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